Adding son as a director of Limited Company

[mccoypat94]

Small business owner. Limited Company , both wife & I are directors.

My son has taken over the day to day running of the business in the past number of years, allowing me to take a back seat. He is doing a good job so I leave him to it.

At present he is asking to become a director of the company, How do I go about adding him, do either my wife or I have to resign?
At present he is just effectively PAYE worker, will becoming a director change how he taxed also?

 

[peemac]

Simply fill his details in on a B10 form and file it.

You can have as many directors as you like.

Gives him more legal and regulatory responsibility - make sure he knows that.

Assuming you have an accountant that has access to cro CORE system, they'll be able to do it all online and will just get your son to sign the form.

 

[mccoypat94]

Many thanks, does it change his status for wages? from being a PAYE worker?

 

[T McGibney]

Many thanks, does it change his status for wages? from being a PAYE worker?

You and your son really should get specific professional advice before making any change as the tax and company law implications attaching to an appointment as director can be significant depending on your situation.

 

[cremeegg]

You really need to take a broader view of this question.

What is proposed regarding shareholdings and succession planning?

Don't do something now that will provide a simple solution to todays question, that might tie your hands on larger issues in the future.